Government decision angers accountants

The Government has been criticised for its decision not to introduce legal controls over the use of the term accountant.

Last week the Dáil was told that legal controls over use of the term were not to be introduced in the Companies (Auditing and Accounting) Bill 2003.

Instead, the Minister of State at the Department of Enterprise, Trade and Employment, Mr Michael Ahern, said he would ask the Irish Auditing and Accounting Supervisory Authority (IAASA), which the Bill will establish, to consider the matter and report back to him.

The Institute of Chartered Accountants in Ireland (ICAI) has said that legislation will probably be needed to introduce controls over use of the term and so the approach being adopted by the Government will take years.

ICAI chief executive Mr Brian Walsh expressed his disappointment at the announcement.

"This is a consumer protection issue first and foremost. When a member of the public visits somebody who calls him or herself an 'accountant', they will surely expect that the performance of that accountant will be subject to the controls exercised by the accounting supervisory body. But that is not the case.

"Anyone can style himself as an accountant and act without the mandatory professional indemnity insurance and quality controls imposed by the recognised accountancy bodies. Now the same 'accountant' will be free from the supervision of the state body.

"Worse still, the Bill if passed in its current form actually creates an incentive for people to leave the prescribed accountancy bodies to escape both the quality control imposed by those bodies and the scope of IAASA."

It is clear from the Dáil debate that the Minister has considerable support from the Opposition parties to address the matter, Mr Walsh said.

"To kick it to touch once again is neither in the interest of the public or the supervisory authority itself.

He said the IAASA may find itself subject to criticism for being unable to address malpractice outside of its control.

"Even if the issue is addressed by IAASA it will probably require legislation to address it. By not addressing it now, the Minister is long-fingering the issue for years," Mr Walsh said.